Own it

Should you buy property just because you can? Here's how to make the most of a buyers' market

Everyone talks about owning property and how it’s the best thing to do if you can afford it. I am currently renting and managing to save some money so I could start thinking about buying if I wanted to, should I?

If you can afford to do so, in many ways now is a good time to be a first-time buyer, with increased government and private incentives and falling house prices. However, if you are going to buy now, you’ll need at least a 10% deposit and you could feasibly need up to 40%. There are also other costs to consider such as stamp duty, legal and removal costs, survey and mortgage arrangement fees and buildings insurance.

On the upside, if you do have these financial ducks in a row, you could bag a bargain in the current housing market.

Additionally, there are a few other things you could consider to make your money go further or get you on the ladder without needing as much in savings. You could think about options such as:

• Part ownership schemes – You buy a partial share in a home and effectively rent the remaining share. This means you only need a percentage of the starting capital, but you also only get a percentage of any profit.
   
• Buy a ‘starter’ home – Property developers are keen to sell new properties and are offering attractive packages such as help with deposits, rent now/buy later schemes and food vouchers. Some feel that these new builds lack character but they can definitely help get you on the ladder and on the way to a house with a bit more history.
   
• Buying at auction – You can get some real bargains but go with someone who is experienced in properties and auctions so that you don’t end up with an unsalvageable wreck.

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